LRB-4599/2
MJL&MDK:kmg:km
1999 - 2000 LEGISLATURE
March 15, 2000 - Introduced by Representatives Ott, Hoven, Bock, Carpenter,
Handrick, Hebl, Powers, Hahn, Wieckert, Richards, Travis, Miller, Pocan,
Boyle, Ryba, J. Lehman, Townsend, Kreuser, Berceau
and Black,
cosponsored by Senators Welch and Zien. Referred to Joint committee on
Information Policy.
AB879,1,6 1An Act to renumber 196.219 (2m); to amend 196.196 (2) (a) and 196.203 (1); and
2to create 20.566 (2) (v), 25.17 (1) (aj), 25.98, 76.55, 196.219 (2m) (a), 196.219
3(2m) (b) (title), 196.219 (2m) (c) and 196.219 (2r) of the statutes; relating to:
4access service rates charged to and assessment of unaffiliated
5telecommunications providers, creating an assistance fund for "911" and
6making an appropriation.
Analysis by the Legislative Reference Bureau
This bill does each of the following: 1) imposes restrictions on access rates
charged by large telecommunications utilities to unaffiliated telecommunications
providers; and 2) provides for awarding 911 assistance grants to eligible local units
of government.
Access rate restrictions
Under this bill, a large telecommunications utility or a holding company that
operates or controls a large telecommunications utility may not, unless approved by
the public service commission (PSC), charge an access rate to an unaffiliated
telecommunications provider that is greater than the lowest compensation rate that
the large telecommunications utility or holding company charges to itself, an
affiliate or any other telecommunications provider for the same or similar service,
basic network function or element used for terminating or transporting a local

exchange call. This prohibition applies beginning one year after the effective date
of the bill. The bill defines a "large telecommunications utility" as a
telecommunications utility with more than 200,000 access lines in this state, and
defines an "access rate" as any rate, fee, price or amount for the provision of an access
service or any basic network function or element that comprises an access service or
any traffic sensitive or nontraffic sensitive charge. Under current law, an "access
service" is defined as the provision of switched or dedicated access to a local exchange
network for the purpose of enabling a telecommunications provider to originate or
terminate telecommunications service.
The PSC may approve an access rate that exceeds the above rate only if the PSC
finds, after a hearing, that the large telecommunications utility or holding company
has experienced a substantial change in circumstances that justifies the rate and
that the rate satisfies each of the following:
1. The access rate will not have an anticompetitive impact on competitors.
2. The access rate does not exceed the large telecommunications utility's or
holding company's total service long-run incremental costs in providing the service.
3. The access rate is in the public interest.
In addition, the bill requires each unaffiliated telecommunications provider to
pass on to its customers the savings that it receives from the reduction in access rates
and permits the PSC to review the method of passing such savings on to its
customers.
911 assistance grants
The bill creates a 911 assistance fund (fund) from which the department of
revenue (DOR) makes grants to eligible local units of government for certain costs
related to establishing or improving a basic or sophisticated 911 system. A "basic
system" is a telecommunications system that automatically connects a person who
dials the digits "911" to a facility that directly dispatches an emergency service
provider, relays a message to the appropriate emergency service provider or
transfers the call to the appropriate emergency service provider. A "sophisticated
system" is a basic system that is capable of identifying the address and telephone
number of a person making a "911" call.
The fund consists of one-time assessments that large telecommunications
utilities must pay to the PSC. The amount of an assessment is equal to the result
obtained by multiplying the number of access lines in this state owned by a large
telecommunications utility by the difference between the large telecommunications
utility's access rates in effect on the effective date of the bill and the access rates in
effect one year following the effective date of the bill. The PSC must deposit the
assessments in the fund.
The bill requires DOR to disburse grants from the fund to eligible local units
of government, which must use the grants to pay for eligible costs and debt service
costs directly related to establishing or improving a basic or sophisticated system.
An "eligible local unit of government" is defined as a town, village, city or county that
satisfies two criteria: 1) it operates a public safety answering point, or intends to
operate a public safety answering point within 18 months after the effective date of
the bill; and 2) it has a large telecommunications utility operating within its borders.

DOR must disburse grants according to a formula that first establishes an allocation
to each county that includes an eligible local unit of government, and, from that
allocation, to each local unit of government that operates a public safety answering
point.
Under the formula, the amount of money allocated to each county is determined
by multiplying the fund balance by a fraction whose numerator is equal to the
number of access lines owned by large telecommunications utilities in the county and
whose denominator is equal to the number of access lines in the state that are owned
by large telecommunications utilities. The amount of money distributed to each
eligible local unit of government from the county allocation is determined by
multiplying the county allocation by a fraction whose numerator is equal to the
number of county residents who are or will be served by the eligible local unit of
government's basic or sophisticated system and whose denominator is equal to the
number of county residents who are or will be served by any eligible local unit of
government's basic system or sophisticated system.
A different rule applies for determining the amount of a grant to a county that
has a population of more than 500,000 and that operates a public safety answering
point. For such a county, DOR must award a grant equal to the lesser of 5% of the
amount of the county allocation determined under the above formula, or the total
eligible costs and debt service costs incurred by the county.
Eligible local units of government are required to deposit grant moneys in a
separate account and submit a report to DOR within one year after receiving the
grant. The report must document the uses to which the grant money has been put.
The bill prohibits an eligible local unit of government from using grant moneys for
the cost of equipment that an emergency service provider uses to respond directly to
an emergency call or for the cost of personnel other than certain personnel training
costs.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB879, s. 1 1Section 1. 20.566 (2) (v) of the statutes is created to read:
AB879,3,32 20.566 (2) (v) Assistance grants for "911". From the assistance fund for "911",
3a sum sufficient for grants made under s. 76.55.
AB879, s. 2 4Section 2. 25.17 (1) (aj) of the statutes is created to read:
AB879,3,55 25.17 (1) (aj) Assistance fund for "911" (s. 25.98).
AB879, s. 3 6Section 3. 25.98 of the statutes is created to read:
AB879,4,3
125.98 Assistance fund for "911". There is established a separate nonlapsible
2trust fund designated as the assistance fund for "911", consisting of all moneys
3deposited under 1999 Wisconsin Act .... (this act), section 12 (3 ).
AB879, s. 4 4Section 4. 76.55 of the statutes is created to read:
AB879,4,5 576.55 Assistance grants for "911". (1) In this section:
AB879,4,66 (a) "Basic system" has the meaning given in s. 146.70 (1) (c).
AB879,4,87 (b) "Debt service costs" means principal and interest costs for bonds issued for
8the purpose of financing eligible costs.
AB879,4,99 (c) "Department" means the department of revenue.
AB879,4,1510 (d) "Eligible costs" means costs incurred after the effective date of this
11paragraph .... [revisor insert date], that are directly related to purchasing or leasing
12equipment for establishing or improving a basic system or a sophisticated system,
13including costs for telephone, radio communications, computer-aided dispatch,
14records management, voice recording and mobile data network systems; and costs
15for training personnel to use the equipment.
AB879,4,1816 (e) "Eligible local unit of government" means a town, village, city or county that
17has a large telecommunications utility operating within its borders and that satisfies
18one of the following:
AB879,4,2019 1. The town, village, city or county operates a public safety answering point on
20the effective date of this subdivision .... [revisor inserts date].
AB879,4,2321 2. The town, village, city or county intends to operate a public safety answering
22point no later than the first day of the 19th month beginning after the effective date
23of this subdivision .... [revisor inserts date].
AB879,5,3
1(f) "Fund balance" means the balance in the assistance fund for "911"
2immediately after the public service commission has deposited all of the payments
3made under 1999 Wisconsin Act .... (this act), section 12 (3).
AB879,5,54 (g) "Large telecommunications utility" has the meaning given in s. 196.219
5(2m) (a) 4.
AB879,5,66 (h) "Public safety answering point" has the meaning given in s. 146.70 (1) (gm).
AB879,5,77 (i) "Sophisticated system" has the meaning given in s. 146.70 (1) (i).
AB879,5,10 8(2) (a) Except as provided in sub. (3), the department shall award a grant from
9the appropriation under s. 20.566 (2) (v), equal to the amount determined under par.
10(b), to an eligible local unit of government for eligible costs and debt service costs.
AB879,5,1411 (b) The department shall award a grant under this section to an eligible local
12unit of government to cover eligible costs and debt service costs. Except as provided
13in sub. (3), the department shall award a grant to each eligible local unit of
14government equal to an amount determined as follows:
AB879,5,1915 1. For each county that includes an eligible local unit of government, multiply
16the fund balance by a fraction whose numerator is equal to the number of access lines
17owned by large telecommunications utilities in the county and whose denominator
18is equal to the number of access lines in the state that are owned by large
19telecommunications utilities.
AB879,5,2420 2. Multiply the result under subd. 1. by a fraction whose numerator is equal
21to the number of county residents who are or will be served by the eligible local unit
22of government's basic system or sophisticated system and whose denominator is the
23number of county residents who are or will be served by any eligible local unit of
24government's basic system or sophisticated system.
AB879,6,4
1(3) For a county that has a population of more than 500,000 and that operates
2a public safety answering point, the department shall award a grant in an amount
3equal to the lesser of 5% of the amount calculated for the county under sub. (2) (b)
41. or the total eligible costs and debt service costs that are incurred by the county.
AB879,6,10 5(4) A grant recipient under this section shall deposit the grant moneys in a
6separate account and shall submit a report to the department within one year after
7receiving the grant. The report shall document the uses to which the grant money
8has been put. A grant recipient may not use grant moneys for the cost of equipment
9that an emergency service provider uses to respond directly to an emergency call or
10for the cost of personnel other than the cost of training personnel to use equipment.
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